Head to the Internet and find an example of international market entry or expansion. Identify the stimuli and change agents involved. Then, identify the strategy for entering the market and whether the company used export, licensing, franchising, or foreign direct investment. Provide an opinion on the strengths and weaknesses of the approach . . . was this the right decision?
Strategy used by KFC to enter international market is that of franchising. kFC as franchised its operations in Pakistan to a company name Cupola. Due to cultural issues and issues of terrorism associated with Pakistan, kFC decided to enter into franchising agreement with a Dubai based company,Cupola. This company handles the businesses of KFC in Pakistan in return for fair share of profit. The risk/weakness involved in this approach is that if the franchise is incompetant then there can be damaged and destruction to the brand name of KFC. And also if appropriate legal conditions are not defined then the contractual partner may himself act as a competitor in local market. The advantage of this approach is that there is low level of hassle, control, involvement and investment to grow the business.
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